Doing some research on energy saving for commercial and small industrial clients. Is power factor an issue for these size of power users? How do power companies monitor power factor for billing purposes for mid-size and large commercial users? Interested in how the information is collected and gathered. Or is this largely confined to big industrial users where the cost of a SCADA link is justified. Thanks

Bjarney, do the power companies typically monitor commercial facilities for KvarH and demand Kw and Kvar? I was hoping that some of our utility forum participants could shed some light on what would trigger the need for that level of metering from a utility point of view.

We have two commercial general rates that we use most of the time (SS & SL or secondary small and secondary large). The cutoff is a 50 kW of demand to get the demand rate. If you are on the demand rate, you will be charged for the energy used, the maximum or peak demand in the last year, and for your worst power factor during the billing cycle. Under 50 kW of demand and you are charged for energy usage only, the demand and power factor is not measured.

¬†It is probably a mistake to base the feasibility or payback interval by assumption of a utility‚Äôs tarriffs, or that they are the same as a neighboring utility. Power-factor clauses in tarriffs can be complicated.

¬†¬†¬†[An example] ‚ÄúFor calculating the power factor, the District will determine the ratio between kilowatt and reactive kilovolt-ampere (kVAr) by means of installed instruments. In any billing period when a customer‚Äôs maximum 15-minute reactive kVAr demand is in excess of 62% of maximum kilowatt demand in the current or previous 11 months, an additional charge for each reactive kVAr of such excess will be made. At the District‚Äôs option, the power factor may be determined by means of periodic tests. If determined by tests, the resulting power factor will remain in effect until a new determination is made.‚ÄĚ

Sixty-two percent in the example equates to a PF of 0.85, which is a fairly ‚Äėgenerous‚Äô condition. Others have penalties outside of 0.97 lagging to 0.97 leading PF‚ÄĒNow that‚Äôs stiff ‚Äúretribution.‚ÄĚ

Sixty-two percent in the example equates to a PF of 0.85, which is a fairly ‚Äėgenerous‚Äô condition. Others have penalties outside of 0.97 lagging to 0.97 leading PF - Now that‚Äôs stiff ‚Äúretribution.‚ÄĚ

Actually, most electric utilities end up doing the same thing but it looks differently. We have a line at 85% power factor. In other words we bill for a power factor that is worse than 85%. However, we will give a credit for power factor that is better than 85%. The bottom line is the same as your example but it sounds better. I have seen another electric utility that sets up the billing to charge for the kVA instead of %PF. Of course you can cut the kVA by correcting the PF.

Thanks for the info. you helped clear up some of the questions that I had. I knew that the utilities varied in their charges. In your opinions, are the customers out there aware of the penalties that they may be paying for being out of the power factor window, or is power factor a non-issue due to better technology ( such as HPF ballasts in lighting)?

"I believe" our customers know they are being billed for the poor power factor because it is only the larger customers that are put on the better rate. These customers have "generally" had contact with one of our marketing types and had the billing explained to them (doesn't mean that they listened).